June is my birthday month, so I always hope to report good news from the real estate market to feel there’s even more to celebrate. I may get my wish this year, but there are important factors affecting our market currently that weigh in the balance.
Builder & Developer News reported that existing home sales have slightly dipped for “previously owned” homes, for the 2nd straight month. The dip is small, only 1.3%, but indicates that volume increases have ceased for most of the nation. This is true
everywhere but the West ---where existing home sales have risen 5.8%. That explains why our Los Angeles buyers are still competing to win the home of their dreams at the negotiating table if price is right and multiple offers are on the table.
We live in an amazing City, where demand for residential real estate seems endless. But let’s not ignore what the Northeast, South and Midwest are seeing --- a slight slowing in the buying spree. This is a clear message for our LA sellers : price your home correctly tuned to market conditions and sell during this advantageous time. Please read that last sentence once more.
Buyers are still well served here, though, due to favorable mortgage rates and increasing labor market conditions. Also, there is plentiful inventory at the luxury price levels above $ 5million, especially in the new construction estates sector. Our economy seems to be humming, in spite of diplomatic unrest at the national level. All of us want the good times to continue but must moderate our thoughts that nothing lasts forever and real estate follows predictable cycles.
Kick off your summer with the belief that if you’re a Seller this is your time to sell and if a Buyer, a very good time to buy. Or, like me, kick it off with a cake filled with too many candles and enjoy the Southern California sunshine!